[SK E&S]
SEOUL -- SK E&S, an energy company involved in power generation and the development of gas fields abroad, agreed to sell a 49 percent stake in its wholly-owned subsidiary, which runs a lucrative LNG power plant, to a Thai company.
The company said in a regulatory filing Wednesday that the stake worth 885.2 billion won ($780.6 million) in Paju Energy Service was sold to Thailand's Electricity Generating Public Company (EGCO) which generates and sells electricity. A contract will be signed this month.
After the sake sale, SK E&S will keep running Paju Energy Service as its largest shareholder, while EGCO will serve as the South Korean company's strategic partner to create a synergy effect.
The stake sale is aimed at improving the financial status of SK E&S, which plans to invest more in the renewable energy sector. The deal came at a time when South Korea's third-largest conglomerate, SK Group, seeks a structural change to focus on new growth engines.
Hana Financial Investment and a consortium involving IGIS PE, a local private equity firm, have offered higher prices than EGCO. But SK E&S selected the Thai company, reflecting a business strategy to expand its presence abroad especially in Thailand.
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